IRS Issues Manual on Penalties and Incorrect Appraisals

The IRS in October made changes to its Penalty Handbook and Penalties Applicable to Incorrect Appraisals. Appraisers who conduct work for the IRS are strongly encouraged to familiarize themselves with the procedures outlined in the manual, which, among other things, defines how a 6695A penalty would be applied against appraisers. Also addressed are issues surrounding the issuance of a Letter 4477, audit appointment meetings and the “more likely than not” exception.